Correlation Between Franklin Growth and Strategic Enhanced
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Strategic Enhanced at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin Growth and Strategic Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Strategic Enhanced Yield, you can compare the effects of market volatilities on Franklin Growth and Strategic Enhanced and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin Growth with a short position of Strategic Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Strategic Enhanced.
Diversification Opportunities for Franklin Growth and Strategic Enhanced
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Strategic is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Strategic Enhanced Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Enhanced Yield and Franklin Growth is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin Growth Opportunities are associated (or correlated) with Strategic Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Enhanced Yield has no effect on the direction of Franklin Growth i.e., Franklin Growth and Strategic Enhanced go up and down completely randomly.
Pair Corralation between Franklin Growth and Strategic Enhanced
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 3.08 times more return on investment than Strategic Enhanced. However, Franklin Growth is 3.08 times more volatile than Strategic Enhanced Yield. It trades about 0.26 of its potential returns per unit of risk. Strategic Enhanced Yield is currently generating about 0.13 per unit of risk. If you would invest 6,014 in Franklin Growth Opportunities on September 4, 2024 and sell it today you would earn a total of 330.00 from holding Franklin Growth Opportunities or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Strategic Enhanced Yield
Performance |
| Timeline |
| Franklin Growth Oppo |
| Strategic Enhanced Yield |
Franklin Growth and Strategic Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Strategic Enhanced
The main advantage of trading using opposite Franklin Growth and Strategic Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Strategic Enhanced can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Strategic Enhanced will offset losses from the drop in Strategic Enhanced's long position.| Franklin Growth vs. Ab Global Risk | Franklin Growth vs. Artisan Global Unconstrained | Franklin Growth vs. Ab Global Real | Franklin Growth vs. Dreyfusstandish Global Fixed |
| Strategic Enhanced vs. Bond Fund Investor | Strategic Enhanced vs. Strategic Enhanced Yield | Strategic Enhanced vs. Cavanal Hill Hedged | Strategic Enhanced vs. Limited Duration Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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